Bespoke Derivatives Still Require Standardization – Expert

The introduction of MiFID II has resulted in a need for more standardisation across bespoke derivatives products, an expert told FOW.

Under the new rules, derivatives products must be identified using an International Securities Identification Numbers (ISIN) code, which includes the product’s expiry date. This creates a burden when products with similar features, such as a 10-year swap, are traded and expire, on different days.